Your financial institution has
the legal rights to repossess your car if you have failed to make the
payments to them. Unless you have been given some grace period, they can
take actions even if you are one day late.
Virginia laws state that the company does not need to notify you before
picking the car.
They can pick it from any place while it is parked. But, if they pick
the car without any legal reason, it is a felony. Car can be sold after
repossession and you will have to pay the balance amount if the total
due has not been completely recovered as a result of the auction.
To avoid this action from taking place, talk to your lenders. Know the
present situation and make arrangements to pay the debt. This will be
much easier rather than going through the
embarrassment.
So, I have a a question. I
guess it's something I have always wondered about car repossessions. If
someone has a car repossessed, do they have to pay the balance off
completely even though the person does not have the car anymore? I guess
I am referring to in the event that the car is not sold after
repossession.
Your creditors have the rights
repossess your car whenever there is a default in paying back the loan
amount. For this activity to take place, they don't need to issue any
notice to you. After repossession has taken place, you will have to pay
the balance due on the loan as well as the towing and storage costs
borne by the company, to get your car back.
You still have a chance to get your car back. If you are unable to make
the payment during this time, your car can be auctioned and you will
have to pay the balance amount if the total has not been fully
recovered.
Sometimes, it is better to sell the car by yourself and pay off the debt
when you are seeing a default approaching. By doing this, the cost of
repossession and a negative entry in the CR can be possibly
avoided.
so you are paying for
something you no longer own. how is that fair?
Sub: #4 posted on Fri, 03/02/2007 - 19:54
Unregistered
Here's a scenario I come
across a lot: debtor finances a car, then drives around without
insurance and the car gets totalled. Then debtor says "why should I
keep paying when the car is wrecked?" Why?
The finance company did not sell the vehicle to you, they financed it.
They spent money out of their pocket so that you could have the car. If
your loan was for $12,000 then that means the finance company cut a
check to the car dealer for $12,000 on your behalf. You owe it back to
them, whether you have the vehicle or not.
The car is simply a form of security pledged against your promise to pay
the loan back. If you default, the finance company takes their chattel
and sells it for whatever it is worth at auction. Whatever they sell it
for is applied to your balance. If they sell it for more than you owe
on the loan, they give you a refund. If they sell it for less than you
owe, then you still owe the remaining balance.
Put yourself in their shoes. Suppose you have a "good" friend who wants
a car. You agree to loan him the money and you cut a check to the car
dealer for $10,000 to cover the purchase; the car dealer puts your name
on the title as a lienholder but your friend is the legal owner. Your
friend pays you back $1000 then stops paying (he still owes you $9K).
You call him several times and he doesn't return your phone calls. You
may start to worry that he won't pay you back. Several months go by and
he still doesn't pay you a dime. So you stop by his house one day and
take the car. ... Turns out he's had a few fender benders, spilled soda
all over the seats and carpet, broke off the turn signal lever, hasn't
taken care of the car ... you can only sell the car for $5000. Would
you want to lose $4000 "just because he doesn't have the car anymore?"
Wouldn't you want break even?
I have found your forum very interesting and informative. Now I need
some advice. I have a divorce decree stating that a car debt that I
co-signed for back in 2000 is the sole responsibility of my ex. We have
been divorced since 08/2002. It shows on my credit report as
"voluntarily surrendered" in 10/2002-- And a tremendous balance due. The
auto company also reports on a monthly basis that no payment has been
made. I was never informed that the payments had gone late, that the
car was surrendered, (or for that matter that there was a problem with
it at all!) I believe that the agencies involved assumed I was informed
of the situation because I shared his last name. I accidentally found
out about it upon requesting a credit report. From time to time I
receive collection calls on this. When I tell them the divorce situation
and read them the judgment they just tell me that they do not have to
recognize the court's order. Most recently I received a message from
First Financial Asset Management. When I returned the phone call asking
for information I was told that they would not tell me anything about
the debt unless I agreed to "be recorded" stating that I was going to
pay it. Needless to say, I did not negotiate with these people. My
recent credit inquiries show that this item is scheduled to be removed
from my report in 10/2009. I have talked to several attorneys regarding
post-judgment orders against my ex-husband but this appears to be very
costly. Any advice from someone who has been in a similar situation is
greatly appreciated.
Sub: #6 posted on Tue, 05/15/2007 - 17:21
Unregistered
Sometimes if a car is repoed,
the finance company will let you have it back if you get caught up on
the payments, but you usually only have a short time to do this, but I
think it all depends on the company and the circumstances for the
repocession.
I think the CA is telling the
truth. You signed with the creditor, but you did not divorce the
creditor, regardless of the judge's order. If I had to guess, you ex was
unable to obtain new financing for the car, and turned it in/had it
repo'd instead. He may or may not have known what the outcome would be.
Whatever the case, I think your best, if not, only option, is to pursue
this through a divorce attorney.
I'd send a letter to the CA, return receipt, revoking their right to
call you. Make them do everything through the mail--this cuts a lot of
the crap. You can also send a separate letter demanding validation of
the debt.
[quote]From time to time I
receive collection calls on this. When I tell them the divorce situation
and read them the judgment they just tell me that they do not have to
recognize the court's order.[/quote]
I'm a little confused about that statement you made. A collection
agency doesn't have to listen to the court order? I'm confused.
Were there some stipulations in your divorce?
I believe that the creditor is
trying to tell me that the debt is still mine, despite the court order
stating differently. Basically they are saying that they do not have to
recognize a divorce. As a footnote to a response above, I have
requested a validation of the debt from the original auto company and
everyone who has called since. I have received nothing from anyone. I
disputed the debt with the credit reporting agencies but the
investigations came back validating the debt. Is there a Statute of
Limitations that may apply here? The original transaction and divorce
was in NJ. Thanks for all of the help!
Virginia laws state that the company does not need to notify you before picking the car.
They can pick it from any place while it is parked. But, if they pick the car without any legal reason, it is a felony. Car can be sold after repossession and you will have to pay the balance amount if the total due has not been completely recovered as a result of the auction.
To avoid this action from taking place, talk to your lenders. Know the present situation and make arrangements to pay the debt. This will be much easier rather than going through the embarrassment.
Sub: #1 posted on Mon, 01/09/2006 - 15:54
(Posts: 1231 | Credits: )
Sub: #2 posted on Tue, 01/10/2006 - 03:08
(Posts: 41 | Credits: )
You still have a chance to get your car back. If you are unable to make the payment during this time, your car can be auctioned and you will have to pay the balance amount if the total has not been fully recovered.
Sometimes, it is better to sell the car by yourself and pay off the debt when you are seeing a default approaching. By doing this, the cost of repossession and a negative entry in the CR can be possibly avoided.
Sub: #3 posted on Tue, 01/10/2006 - 08:43
(Posts: 1229 | Credits: )
Sub: #4 posted on Fri, 03/02/2007 - 19:54
The finance company did not sell the vehicle to you, they financed it. They spent money out of their pocket so that you could have the car. If your loan was for $12,000 then that means the finance company cut a check to the car dealer for $12,000 on your behalf. You owe it back to them, whether you have the vehicle or not.
The car is simply a form of security pledged against your promise to pay the loan back. If you default, the finance company takes their chattel and sells it for whatever it is worth at auction. Whatever they sell it for is applied to your balance. If they sell it for more than you owe on the loan, they give you a refund. If they sell it for less than you owe, then you still owe the remaining balance.
Put yourself in their shoes. Suppose you have a "good" friend who wants a car. You agree to loan him the money and you cut a check to the car dealer for $10,000 to cover the purchase; the car dealer puts your name on the title as a lienholder but your friend is the legal owner. Your friend pays you back $1000 then stops paying (he still owes you $9K). You call him several times and he doesn't return your phone calls. You may start to worry that he won't pay you back. Several months go by and he still doesn't pay you a dime. So you stop by his house one day and take the car. ... Turns out he's had a few fender benders, spilled soda all over the seats and carpet, broke off the turn signal lever, hasn't taken care of the car ... you can only sell the car for $5000. Would you want to lose $4000 "just because he doesn't have the car anymore?" Wouldn't you want break even?
Sub: #5 posted on Fri, 03/02/2007 - 20:05
Moderators
(Posts: 2296 | Credits: )
I have found your forum very interesting and informative. Now I need some advice. I have a divorce decree stating that a car debt that I co-signed for back in 2000 is the sole responsibility of my ex. We have been divorced since 08/2002. It shows on my credit report as "voluntarily surrendered" in 10/2002-- And a tremendous balance due. The auto company also reports on a monthly basis that no payment has been made. I was never informed that the payments had gone late, that the car was surrendered, (or for that matter that there was a problem with it at all!) I believe that the agencies involved assumed I was informed of the situation because I shared his last name. I accidentally found out about it upon requesting a credit report. From time to time I receive collection calls on this. When I tell them the divorce situation and read them the judgment they just tell me that they do not have to recognize the court's order. Most recently I received a message from First Financial Asset Management. When I returned the phone call asking for information I was told that they would not tell me anything about the debt unless I agreed to "be recorded" stating that I was going to pay it. Needless to say, I did not negotiate with these people. My recent credit inquiries show that this item is scheduled to be removed from my report in 10/2009. I have talked to several attorneys regarding post-judgment orders against my ex-husband but this appears to be very costly. Any advice from someone who has been in a similar situation is greatly appreciated.
Sub: #6 posted on Tue, 05/15/2007 - 17:21
Sub: #7 posted on Tue, 05/15/2007 - 18:38
Moderators
(Posts: 2279 | Credits: )
I'd send a letter to the CA, return receipt, revoking their right to call you. Make them do everything through the mail--this cuts a lot of the crap. You can also send a separate letter demanding validation of the debt.
Sub: #8 posted on Wed, 05/16/2007 - 04:14
(Posts: 1634 | Credits: )
I'm a little confused about that statement you made. A collection agency doesn't have to listen to the court order? I'm confused. Were there some stipulations in your divorce?
Sub: #9 posted on Wed, 05/16/2007 - 05:23
(Posts: 1388 | Credits: )
Sub: #10 posted on Wed, 05/16/2007 - 15:16